Negotiations Aim to Expand Crude Diversity and Support Trade Deal
NEW DELHI, Feb 20 (Reuters) — The United States is in active negotiation with India over selling Venezuelan crude, US envoy Sergio Gor said on Friday, as Washington seeks to help New Delhi diversify away from Russian oil. The talks involve the US Department of Energy and India’s Ministry of Energy, and officials hope to announce progress soon.
Gor spoke on the sidelines of a New Delhi event where India joined the US-led Pax Silica initiative to bolster a global silicon supply chain for high-tech industries. He reiterated that oil diversification formed a key part of an interim trade deal between the two countries. The United States agreed this month to cut tariffs on Indian goods to 18%, and it lifted a 25% punitive levy after India consented to reduce purchases of Russian crude, which Washington says fuels Russia’s war in Ukraine.
Under the proposed arrangement, India would increase crude imports not only from the United States but also potentially from Venezuela, Gor said. Indian refiners have already ordered Venezuelan oil through traders licensed by the US, and several state-run and private firms have begun acquiring Venezuelan volumes as New Delhi shifts its sourcing strategy.
Trade Talks Advance as Oil Strategy Shifts
Gor also indicated that a final trade agreement will be signed “sooner than later,” with a few technical points pending finalisation. India’s trade minister said the interim deal is expected to take effect in April, with formal notifications for tariff cuts likely this month.
India became the largest buyer of Russian seaborne crude after sanctions were imposed by the US and its allies following Russia’s 2022 invasion of Ukraine. However, imports from Moscow have fallen sharply, and refiners are increasingly turning to Venezuelan crude to meet demand and support diplomatic ties with Washington.
